Which single change would reduce concentration the most?
An allocation question asks how a portfolio is divided — by asset class, sector, region or currency. What counts is the weight of each slice against the total, and the look-through into funds: an ETF is not one holding but hundreds.
Worked through on a sample portfolio. The figures below are that portfolio’s, not yours.
To reduce concentration the most, lowering the share of your largest holding would have the biggest single effect. Your largest position is Apple Inc. and currently makes up 18,41% of the portfolio.
Changing that single position's weight (for example by decreasing it) reduces top‑1 concentration directly and also lowers your top‑5 concentration (which is 65,64%). The portfolio-wide allocation shows the largest class concentration is in Stock at 49,09%.
Summary:
- Largest holding: Apple Inc. — weight 18,41%
- Top 5 weight: 65,64%
- Largest asset class: Stock — weight 49,09%
You can tell me a new target weight for the largest holding and I’ll show how the portfolio concentrations would change.
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The assistant answers the same question about your own holdings, with your figures and today’s prices. Import from your broker, or open the demo portfolio and ask it there.